A recent look at ownership and volatility brings us to a 1.960% target portfolio weight (as a decimal) for Mallinckrodt Public Limited Company (NYSE:MNK) Target weight is the volatility adjusted recommended stock position size for a position in your portfolio. The maximum target weight is 7% for any given stock. The indicator is based off of the 100 day volatility reading and calculates a target weight accordingly. If a stock has been more volatile of late, the lower the target weight will be. The 3-month volatility stands at 52.897 (decimal). This is the normal returns and standard deviation of the stock price over three months annualized.
Investors often have a large selection of stocks to research when looking to add to the portfolio. Investors have the ability to employ many different strategies to help beat the stock market. In the end, the main goal is typically to maximize profits while minimizing risk. Investors commonly strive to diversify the portfolio in order to minimize risk. Most serious investors are well aware of the risks when entering the equity market. Investors may choose to own stocks across multiple industries to keep from having all the eggs in one basket. Others may choose companies of different size, and even delve into foreign markets. Finding those hidden gems in the stock market may not be the easiest of chores. Investors may have to spend many hours doing the research and crunching the numbers.
50/200 Simple Moving Average Cross
Mallinckrodt Public Limited Company (NYSE:MNK) has a 1.26755 50/200 day moving average cross value. Cross SMA 50/200 (SMA = Simple Moving Average) and is calculated as follows:
Cross SMA 50/200 = 50 day moving average / 200day moving average. If the Cross SMA 50/200 value is greater than 1, it tell us that the 50 day moving average is above the 200 day moving average (golden cross), indicating an upward moving share price.
On the other hand if the Cross SMA 50/200 value is less than 1, this shows that the 50 day moving average is below the 200 day moving average (a death cross), and tells us that share prices has fallen recently and may continue to do so.
Returns and Margins
Taking look at some key returns and margins data we can note the following:
Mallinckrodt Public Limited Company (NYSE:MNK) has Return on Invested Capital of 0.327134, with a 5-year average of 0.19609 and an ROIC quality score of 2.708721. Why is ROIC important? It’s one of the most fundamental metrics in determining the value of a given stock. It helps potential investors determine if the firm is using it’s invested capital to return profits.
Investors looking to make big gains in the equity market may be looking to fine tune an existing strategy or create a whole new one. It may sound quite easy, buy low and sell high. Obviously, navigating the stock market typically entails much more than that. Identifying market tops and correction levels may be very difficult. Of course, it always hurts to take a loss, but figuring out how to shrink losses can help keep the ship afloat during turbulent market conditions. The situation for the average investor may vary greatly from one person to the next. Some investors will be working with a short-term plan, while other may be focused on a longer-term investment horizon. Goals may also vary from individual to individual. Keeping these goals in sight may help clear up the sometimes foggy investing waters, and provide clarity for creating a winning portfolio.
Mallinckrodt Public Limited Company (NYSE:MNK) of the Pharmaceuticals & Biotechnology sector closed the recent session at 30.82 with a market value of $2567714.
In looking at some Debt ratios, Mallinckrodt Public Limited Company (NYSE:MNK) has a debt to equity ratio of 0.93747 and a Free Cash Flow to Debt ratio of 0.102056. This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated. In terms of Net Debt to EBIT, that ratio stands at 11.7694. This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt. The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio. Mallinckrodt Public Limited Company’s ND to MV current stands at 2.297764. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.
Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.2916 for Mallinckrodt Public Limited Company (NYSE:MNK). The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.
Occasionally, investors may feel like they are riding on a wild roller coaster when dealing with the stock market. Controlling emotions when taking the ride may assist with making necessary decisions when the time comes. Many investors choose to do thorough research when purchasing any stock. Knowing what is owned and why it is owned may help ease the mind when things get sticky. When the market is riding high and there is generally smooth sailing on the investing seas, individual investors may have the tendency to get complacent. Being prepared for any situation may help ease the stress of big market decision making. There may be a time when it seems like everything is going off the rails, but having an actual game plan for management and recovery could make a huge difference both financially and psychologically.
In addition to Capex to PPE we can look at Cash Flow to Capex. This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment needs. Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. Mallinckrodt Public Limited Company (NYSE:MNK)’s Cash Flow to Capex stands at 5.932084.
Near-Term Growth Drilldown
Now we’ll take a look at some key growth data as decimals. One year cash flow growth ratio is calculated on a trailing 12 months basis and is a one year percentage growth of a firm’s cash flow from operations. This number stands at 112.4410% for Mallinckrodt Public Limited Company (NYSE:MNK). The one year Growth EBIT ratio stands at 112.6860% and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at 29.4640% which is calculated similarly to EBIT Growth with just the addition of amortization.
Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at 39.6450%. The one year growth in Net Profit after Tax is 361.7720% and lastly sales growth was 18.7260%.
As most investors most likely have learned, there is no easy answer when deciding how to best take aim at the equity market, especially when faced with a volatile investing scenario. There are many different views when it comes to trading stocks. Investors may have to first come up with a plan in order to build a solid platform on which to compile a legitimate strategy. The vast amount of publically available data can seem overwhelming for novice investors. Making sense of the sea of information may do wonders for the health of the individual investor’s holdings.